Ministerial Segment

Policy Statement by Mr Kim Hak-Su Under-Secretary-General, United Nations, and Executive Secretary, ESCAP (Monday, 23 April 2001)

Mr Chairman, Honourable Ministers, Excellencies,
Distinguished Representatives, Ladies and Gentlemen,

I consider it an honour and a privilege to address the Commission for the first time since assuming my responsibilities as Executive Secretary of ESCAP.  As a unique intergovernmental body covering the vast and diverse expanse of Asia and the Pacific, ESCAP, in my view, can and should do more to build on the growing impulse for regional cooperation in the economic and social fields.  I intend to follow this course during my term of office.  Our resources may be limited, but their efficient and productive use in meeting the needs of the member states is my aim.  This will be possible only with your support and cooperation.

Mr Chairman,

For several years, this region enjoyed an unsullied reputation for its economic dynamism.  In the aftermath of the Asian economic and financial crisis in 1997, that reputation has been somewhat tarnished.  Nevertheless, as noted in this year's Economic and Social Survey of Asia and the Pacific, the region's economic performance continued to strengthen in 2000.  Several developing economies improved on their growth performance of a year earlier.  Broadly speaking, a favourable external environment is an essential prerequisite to sustain the region's growth momentum and to complement national efforts in that regard.

Despite the generally improved economic growth performance of the region, uncertainties remain.  A few months ago, a much more optimistic scenario was predicted.  Uncertainties in the global environment have since tempered that scenario.  An increasingly unfavourable external environment, including the slowdown in the US economy and the lack of recovery of the Japanese economy, is likely to reduce the projected growth rates for 2001 indicated in the Survey.  Several other factors are likely to impinge on the region's growth performance:

-  volatility of oil prices;
 - rising levels of public debt;
 -  impact of demographic dynamics;
 -  substantial increase in flows of international migration;
 -  the "push-pull" factor in rural-urban migration and the impact of free-market economic policies, as detailed in this year's theme study on "Balanced development of urban and rural areas and regions within the countries of Asia and the Pacific."

Mr Chairman,

The process of globalization has served to accentuate the differences between our economies and societies.  In an increasingly interdependent world, notions of responsibility and accountability appear to have been cast aside in favour of short-term gains.  One has only to look at the development picture of this region to see that the advances made have not been all encompassing.  Widespread poverty in Asia remains endemic.  Impressions of progress and prosperity ought to be seen in perspective, especially in terms of contrasts within the region.

At the United Nations Millennium Summit in September last year, the world's leaders pledged to eliminate extreme poverty by the year 2015.  Taking the cue from the Millennium Declaration, I expressed my vision for ESCAP up to the year 2005 comprising the following elements:

1.  Transfer of proven best practices of poverty eradication in the region to developing member states, in different environments.  There are several illustrations of proven best practices in the region including, among others, Saemaul Undong in the Republic of Korea and Grameen Bank in Bangladesh.  It is my intention to test these models in, say, a least developed country, a Pacific island economy and a transitional economy to see if we can try to develop an "ESCAP model" on poverty eradication.

2.  Reversal of the weakening positions of developing member states arising from and along with the process of globalization, and strengthening their negotiating position as a consequence of their weak negotiating capacity.  Developing countries are being increasingly marginalized through the process of globalization, liberalization and rapid advances in information technology.  Government officials in many instances are not familiar with the substance and implications of global agreements and conventions and protocols.  ESCAP, in cooperation with such bodies as the World Trade Organization, the United Nations Conference on Trade and Development and the United Nations Environment Programme, with whom we have institutionalized our cooperation could organize training courses for developing country officials on accession to trade agreements and environmental conventions.

3.  Detection and tackling of common and emerging social problems and issues in the region.  These include, among others, the increasingly serious problem of HIV/AIDS, which has been given a special focus at this Commission session in preparation for the Special Session of the General Assembly on HIV/AIDS in June this year, as well as issues relating to population ageing, migration and disability.  ESCAP has a strong social development programme but the tasks ahead are enormous.  I intend to pay special attention to social issues in the coming months.

Mr Chairman,

When I assumed my present Office, I realized that ESCAP has both strengths and weaknesses.  We need to capitalize on the strengths and remedy the weaknesses.  I felt the need for an objective professional view and analysis of the situation.  Following a series of consultations with United Nations Headquarters, the United Nations Office for Project Services, UNOPS, has been contracted to undertake a management consultancy to improve our efficiency and productivity through the introduction of modern management techniques.  Let me point out here that several Organizations, including UNCTAD, UNIDO, UNESCO, ILO, FAO and WHO have gone through a similar process of reform in order to make themselves more relevant in a fast-changing world.

While the first phase of the management consultancy has been largely driven by considerations of "process change", I intend to undertake a broader and more comprehensive organizational change.  This will focus on a "reengineering" of ESCAP's programmes, conference and secretariat structures, leading up to the review next year of the implementation of Commission resolution 53/1 and a blueprint for our future work.  I have decided to establish a more systematic and regular impact monitoring system in the secretariat so that the results therefrom could be utilized to further enhance the relevance and effectiveness of ESCAP's programme of work.  In that context, I look forward to benefitting from the views of heads of delegations of the member Governments as to what they expect from ESCAP in the course of the Ministerial Roundtable tomorrow.

Mr  Chairman,

It is clear that ESCAP cannot go on doing everything.  Times have changed.  New regional organizations have emerged with their own expertise and areas of competence.  We need to introspect and ask ourselves some tough questions.  Can we claim to be the repository of Asia-Pacific thinking?  Can ESCAP make a difference?   We need to hone in on those areas in which we can claim to have the comparative and competitive advantage, specially in the light of resource constraints.  We need to adopt more innovative approaches to address issues such as information and communications technology, both internally within the secretariat as well as in helping countries to bridge the digital divide.   Efforts are underway to formulate bigger and better projects involving two or more Divisions within the secretariat.  I recognize that resource constraints pose a problem but with well-prepared, efficiently managed, and good project profiles, I plan to visit the capitals of several non-traditional donor countries in the near future as part of a resource mobilization effort.  Eventually, I hope we will be in a position to tap private sector resources.  In view of the impetus provided by the "Global Compact", this would be a logical extension of our attempt to reach out to the private sector. I am also engaged in the process of setting up a Private Sector Advisory Group, comprising private sector CEOs from the region, to assist and advise me in carrying forward the work of ESCAP.

Similarly, with the World Bank, the Asian Development Bank and the United Nations Development Programme, steps have been taken to promote a true sense of partnership.  I am pleased to inform the Commission that we are joining hands with the World Bank and ADB in organizing the Third Asia Development Forum at this venue in June this year.  With UNDP, I was privileged to have been invited to attend and address the Meeting of UNDP Resident Representatives in Asia and the Pacific which was held in Beijing less than two weeks ago.

I am convinced of the need to work more closely with our partners in development, both within and outside the UN system.  I will continue to accord high priority to the Heads of Agency Meeting process, which I co-chair with the UN Resident Coordinator in Thailand.  I remain committed to the focus of poverty alleviation within that process and, more broadly speaking, in the work of ESCAP.

Mr Chairman,

Let me now turn to some of the issues that have been at the forefront of the global agenda; issues that have been among our major preoccupation this past year and will be confronting us again in the immediate future.  I refer to important regional conferences at the Ministerial level organized by ESCAP to articulate a regional perspective to be presented at forthcoming global events relating to "financing for development" and "sustainable development".

As you are aware, an International Conference on Financing for Development sponsored by the United Nations will be held in Mexico next year.  In this connection, ESCAP, in collaboration with the Government of Indonesia and with the cooperation of ADB and UNCTAD, organized a High-Level Regional Consultative Meeting on Financing for Development in August last year.  The report of the meeting has been made available to the Co-Chairmen of the Preparatory Committee for the International Conference.  Further, the recommendations emerging from the Jakarta meeting have been incorporated in the report of the Secretary-General submitted to the Preparatory Committee for the Conference.

Following the Jakarta meeting, the secretariat undertook an in-depth study on the subject of financing for development.  The study has been published as Part Two of this year's Survey and focus on domestic resource mobilization, external private resources, official flows and international systemic issues, with a number of policy recommendations for each of these areas.

I am confident that ESCAP will make a significant substantive contribution to the International Conference on Financing for Development in Mexico in 2002.

Mr Chairman,

"The World Summit for Sustainable Development" will be convened in Johannesburg, South Africa, next year.  Preparatory work underway at the regional level will be very significant in shaping the Agenda for the Summit.  From the regional perspective, a major thrust of the Summit should be on the impact of poverty and globalization on the environment.

"Ecological poverty", which is the result of degradation of natural resources base is the most sombre dimension of poverty.  This is evident in many areas of the region.  The flora has virtually disappeared; erosion of land prevails unchecked; and the hydrological cycle has been disturbed.  As a consequence, the basic means of livelihood have disappeared and more people are becoming impoverished.  It is therefore imperative to undertake remedial actions and policy reforms which, on the one hand, reduce poverty and, on the other, protect the region's environment.  Like poverty, globalization has taken its toll.  In the past few years, its destructive impact on natural resources and biodiversity has been more severe than anticipated.

The Regional Action Programme adopted at the Ministerial Conference on Environment and Development in Asia and the Pacific 2000 held at Kitakyushu, Japan, in September last year provides a framework for action on issues of vital concern to the region.  ESCAP will be collaborating with ADB, UNEP, UN/DESA in organizing five subregional intergovernmental meetings, two regional roundtables and a regional preparatory meeting.  The process will enable developing countries to articulate their concerns regarding the implementation of Agenda 21 and facilitate the identification of initiatives to overcome any constraints.  I urge all members and associate members to actively participate in the regional preparatory process and evolve a "regional platform" outlining key policy issues, priorities and follow-up actions.

Mr Chairman,

Another important event in which the stakes are high for developing countries, particularly of this region, is the next WTO Ministerial Conference scheduled to be held in November this year in Qatar.  The last Commission session, as you  would recall, deliberated on the theme topic relating to the fair and equitable integration of developing countries into the international trading system.  This was followed by the meeting of eminent persons as 'Friends of the Chair' hosted by the  Chairman of the 56th session of the Commission, H.E. Dr Kamal Kharrazi, Minister for Foreign Affairs of the Islamic Republic of Iran.  The eminent persons emphasized "sustainable integration" which takes into account the level of development and peculiar situation prevailing in each country as well as assures that people are the centre and part of the process itself.  Notwithstanding the many WTO Agreements, most developing countries continue to remain at the margin; integration eludes them.  In fact, the reverse process can be seen -- one of disintegration leading to disenchantment, disappointment and despair.  Any new round of negotiations must therefore be predicated on assuring the developing countries a level playing field and removing existing imbalances by focussing on faithful implementation of existing agreements and the built-in agenda.  Bringing new issues on the agenda would be divisive.  It would threaten a repeat of the Seattle debacle.  ESCAP will continue to work closely with the WTO and UNCTAD to assist developing countries to successfully advocate their concerns and advance their common interests in future negotiations.  Moreover,  the principle of universality of membership of WTO must not remain a rhetoric.  It must be faithfully pursued so that the more than half of the region's economies which remain outside the WTO, can gain accession without any further delay.

Mr Chairman,

It is my intention to pay special attention to the needs of the least developed, landlocked and island developing countries of this region.  ESCAP has been active in the regional preparatory work for the Third United Nations Conference on Least Developed Countries, to be held in Brussels in May this year.  I plan to attend that Conference.  I also plan to visit the Pacific sub-region in August this year and will have discussions with leaders of the Pacific island delegations attending the Commission in the coming days to explore the feasibility of organizing a Ministerial meeting during my visit.

Infrastructure redevelopment continues to be a daunting challenge for developing countries.  Opportunities emerging from gobalization and leap frogging developments in technology allude them because they lack the infrastructure.  We, therefore, attach considerable importance to the ESCAP Ministerial Conference on Infrastructure Development, to be held in November this year in Seoul, at the generous invitation of the Government of the Republic of Korea.  The Conference will address emerging issues of vital significance for the economic and social development of the region.  These issues not only relate to the development of transport infrastructure but also its impact on poverty alleviation, environment, social safety, etc.  These are closely aligned with my vision for ESCAP.

Mr Chairman,

It is clear from this brief tour d'horizon that the challenges before us are many.  In this era of globalization, regional cooperation as a means of articulating the shared interests of developing countries has assumed greater significance.  ESCAP, through its catalytic role, can help to bridge the gap between the middle and low-income countries.  I look forward to working together with the member states in translating this vision into reality.